Prosecutors Conduct Additional Raids on Residences of 9 Companies and Representatives Suspected of Collusion in LH Apartment Supervision

The prosecution, investigating allegations of collusion in the bidding process for apartment construction project management services (supervision) ordered by Korea Land and Housing Corporation (LH) and the Public Procurement Service, conducted additional raids on the 10th.

The Fair Trade Investigation Division of the Seoul Central District Prosecutors' Office (Chief Prosecutor Yong Seong-jin) sent prosecutors and investigators to nine construction companies, including an architectural office located in Songpa-gu, Seoul, and six residences of company representatives to secure additional materials.

Seoul Central District Prosecutors' Office, Seocho-dong, Seoul. Photo by Seokjin Choi

The prosecution is investigating on the grounds that these companies prearranged the order and successful bidders in the supervision service bids for apartment construction projects, such as Happy Housing districts ordered by LH and the Public Procurement Service from 2019 to last year, and won the bids sequentially.

Earlier, at the end of August, the prosecution raided the offices and residences of executives and employees of 11 architectural offices, including Heerim Architects & Planners and KD, and the day before, additionally raided five companies located in three places in Gangnam, Seoul, one place in Gyeonggi, and one place in Daejeon. The prosecution stated that the raids on this day were additional searches following those in August.

It is reported that among the 16 companies under investigation, a significant number are former government officials’ firms employing former LH employees.